Poised to extend the 7.9% climb they experienced last week, shares of Nebius Group (NBIS +9.06%) have been climbing during this, the first full week of trading in April. In addition to the prospect of the company making an acquisition, a firm’s bullish outlook on Nebius stock has investors racing to buy shares of the company, a developer of infrastructure for artificial intelligence (AI) computing.
According to data provided by S&P Global Market Intelligence, shares of Nebius are up 21.1% from the end of last Friday’s market session through Thursday’s close.
Image source: Getty Images.
Nebius may go shopping, and investors are paying attention
Nebius doesn’t often make acquisitions, so when investors learned on Thursday that the company is allegedly in talks to purchase AI21 Labs, they sat up and took note. The Information, a tech and finance publication, reported Thursday morning that Nebius is in discussions with the Israeli start-up specializing in AI systems for enterprises.
Today’s Change
(9.06%) $11.33
Current Price
$136.33
Key Data Points
Market Cap
$34B
Day’s Range
$124.55 – $136.55
52wk Range
$20.25 – $141.10
Volume
116K
Avg Vol
15M
Gross Margin
-765.63%
Separately from speculation that Nebius may be growing through an acquisition, investors have been motivated to click the buy button this week after Cantor Fitzgerald initiated coverage of Nebius stock. According to Thefly.com, Cantor Fitzgerald analyst Brett Knoblauch assigned an overweight rating and a $129 price target.
There’s more than one way to gain AI exposure
For those who have Nebius on their radars, it’s important to remember that Nebius isn’t the only AI game in town. With shares of the hyperscaler trading at 896 times operating cash flow, investors interested in AI stocks may want to wait for a pullback before pulling the trigger on a Nebius stock purchase.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.